The ringgit extended its gains against the US dollar at Friday's opening, supported by expectations that the prolonged US government shutdown could prompt the Fed to ease monetary policy further.
At 10.30am, the ringgit was at 4.2100, down 0.17% against the US dollar since it opened at the start of Friday's trading.
Bank Muamalat Malaysia Bhd chief economist Dr Afzanizam Rashid said the US dollar-ringgit exchange rate was likely to remain stable, trading between 4.20 and 4.22 throughout today's trading.
He added that market participants expected the economic uncertainty from the shutdown to put pressure on the Fed to cut interest rates in the future, reducing demand for the US dollar and supporting emerging market currencies like the ringgit.
He added that traders and investors were increasingly relying on private sector surveys of the labour market to gauge economic conditions following the US government shutdown.
In early trade, the ringgit was also higher against a basket of major currencies.
It rose against the euro to 4.9248/4.9412 from 4.9410/4.9468, rose against the British pound to 5.6482/5.6671 from 5.6741/5.6809, and strengthened against the Japanese yen to 2.8543/2.8640 from 2.8669/2.8705.
The local note traded mixed to higher against Asean currencies.
It appreciated against the Thai baht to 12.9409/12.9920 from 12.9829/13.0040, strengthened against the Singapore dollar to 3.2596/3.2707 from 3.2665/3.2707, and was largely unchanged against the Indonesian rupiah at 253.0/254.0 from 253.2/253.6.
The ringgit was unchanged against the Philippine peso at 7.23/7.26 compared to 7.23/7.25 previously.
